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UAE: How Americans are fuelling demand for short-term rentals

Experts note that short-term renters, particularly families, tend to favour lifestyle-driven communities that offer vibrant amenities and excellent connectivity

Published: Mon 21 Oct 2024, 5:33 PM

Updated: Mon 21 Oct 2024, 6:24 PM

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Image used for illustrative purpose. Photo: File

Image used for illustrative purpose. Photo: File

Real estate management consultancies are witnessing increasing demand from Americans for short-term rentals in the UAE, with consultants identifying US residents among their top five source markets for the first time in a decade.

According to a report on short-term rentals, this surge is driven by the historic first visit of a UAE President to Washington DC, which has strengthened UAE-US relations. This trend is highlighted in the Q3 AirDxb Dubai Short-Let Market report.

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“Given that Americans already represent the second-largest nationality of guests at AirDXB properties with 12 per cent in Q3 2024, we anticipate a substantial increase in demand for short-term rentals in Dubai,” stated the report.

It added: “This represents a great example of where short-lets fit with corporate travel as well as holiday makers. The growing collaboration between Nasa, the UAE Space Agency, and the Mohammed bin Rashid Space Center is also contributing to this demand. This trend is especially beneficial for short-let properties in the Meydan and District One areas.”

Tourists favor lifestyle-driven communities

The UAE, renowned as a top destination in the Middle East, captivates visitors with its stunning cities, expansive deserts, and beautiful beaches.

Experts note that short-term renters, particularly families, tend to favour lifestyle-driven communities that offer vibrant amenities and excellent connectivity.

For consumers, the focus is on finding unique experiences provided by diverse hosts, while investors view this as an opportunity to choose properties with strong potential for high returns.

Vinayak Mahtani, CEO of bnbme Holiday Homes, said: “For the first time in 10 years, we are seeing the US residents in our top five source markets; they have taken a place from China. It has to do with the efforts of Dubai Tourism who have actively been targeting the US consumer base with social media and marketing. Dubai is an aspirational brand in the US and many people are excited or inquisitive to visit Dubai.”

He added, “We are seeing both corporate and leisure guests travelling from North America; Emirates, with all its North American destinations, has helped as well.”

Easy access to city’s attractions

Beyond the increase in demand, there are specific areas which are also becoming well-known for the short term rental options they offer.

Anthony Joseph Abou Jaoude, Founder and CEO of Primestay, a holiday home rental company in Dubai, highlighted that areas such as Business Bay, Arjan, Jumeirah Village Circle, Downtown Dubai, Palm Jumeirah, and DAMAC Hills are particularly popular.

These vibrant locales offer a rich blend of world-class amenities and trendy communities, providing unique experiences and effortless access to the city's attractions.

He said: “In recent years, Dubai has become a luxury travel destination, with visitors willing to pay more for high-end accommodations. A significant trend is that families and groups prefer larger holiday homes over multiple hotel rooms, driving up the demand for vacation villas and spacious apartments for short-term rentals.”

Joude added, “In early 2023 up to so far in 2024, Dubai’s rising demand for short-term rentals presents landlords with lucrative opportunities for high occupancy rates and attractive rental yields. Dubai's vibrant tourism scene ensures strong demand for short-term rentals, offering landlords and investors a steady and profitable income stream.”

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